Case Study –Residential Mortgage | Complex Income

Value	£715,000
Loan Amount	£580,000
Property Location	Wandsworth
LTV	85%
Achieved Rate	1.99%
Term	2-year fixed
Completed	March 2022

The Client

Our clients, working as a Barrister and an Accountant required support in obtaining a mortgage for the purchase of their new home. In both professional fields, our clients will benefit from sharp increases in income. However, Applicant one, working as a Barrister, was in his first year of pupillage with only one year of accounts. Applicant two, working as an accountant, was at a firm that had recently been taken over by one of the top 5 global accountancy firms. Whilst at her previous firm she received a large annual bonus, at her current firm, she would not receive one for 8 months.

The Solution

We were able to find a solution whereby the lender was able to use Applicant two’s bonus income to support affordability. Whilst we were unable to provide a bonus projection (as the new firm would not provide this as bonuses were not due for 8 months), we could provide a previous track record, that provided the lender with the knowledge that our client would not move to another position on a lower wage. We were also able to favourably present Applicant one’s income, by providing his incoming receipts over the past few months, which were not yet reflected within his accounts.

The Henry Dannell Difference

With our understanding of the income structures of accountants and barrister's income, we were able to evidence the onward sustainability and upward trajectory of both incomes. We were also able to provide our analysis of previous mergers to offer the lender further confidence that the income for Applicant two was sustainable.